The Dubai Health Authority has announced that it is to begin the use of diagnosis-related groups (DRG) in all hospitals in the emirate.
Use of DRGs helps health insurance companies categorise hospitalisation costs. Rather than paying the hospital for each specific service that was provided, a private insurer will pay the hospital a predetermined amount based upon patients’ DRGs.
The implementation of DRGs took effect this month. The new system was planned for over four years, during which active consultation and stakeholder engagement with the private sector took place, according to a report in Trade Arabia.
DRGs are determined using a variety of metrics, including patient diagnosis, prognosis, and other factors. In addition to controlling the rising cost of health care expenditures, eliminating waste, helping to objectively distribute resources, and create creative incentives to deliver cost effective and high quality care, DRGs will also help to increase transparency and monitor quality across hospitals.
DRGs will additionally maintain high standards of medical practice, clinical pathways and protocols to ensure that hospitals and health care providers adhere to unified protocols of health.